RBA limits 2012 dividend

The Reserve Bank of Australia will once more pay a dividend to the Australian government following two years of losses.

The RBA's annual report, released yesterday, shows the central bank made a profit of $1.08 billion in the year to June 2012 compared with a loss of $4.89 billion in 2011.

The RBA said this "accounting profit" comprised underlying earnings of $710 million, realised valuation gains of $405 million and unrealised valuation losses of $39 million.

The RBA will pay a dividend of $500 million to the Government and allocate $596 million to its reserve fund.

"The process of rebuilding capital", the RBA said, "will need to continue for several more years."